[News] Broadcom Reportedly Secures $10B Custom AI Chip Order from OpenAI, Lifts 2026 AI Sales Forecast

While Broadcom reported better-than-expected fiscal third-quarter earnings and offered strong guidance for the current quarter fueled by soaring ASIC demand amid the AI wave, the U.S. chip giant has thrilled the market by revealing it secured $10 billion in orders for custom AI chips from a new client, according to CNBC and Reuters.

The client’s potential identity could be revealed by Financial Times, as the report notes OpenAI plans to produce its first-ever AI chip next year, which is said to be co-designed with Broadcom.

Reuters, citing Broadcom CEO Hock Tan’s earlier remarks, notes that there are four new potential customers “deeply engaged” in developing custom chips, adding to its three large existing clients.

As noted by CNBC, Tan confirmed during the earnings call that Broadcom secured $10 billion in orders for its custom AI chips, called XPUs, from a fourth client. He also reiterated that this major order has raised the company’s AI revenue forecast for next year and expects strong shipments beginning in 2026, the report adds.

As Commercial Times reported, Broadcom has lifted its CoWoS packaging orders for next year, a move likely fueled by rising custom chip needs from Google, Meta, and other cloud giants. The report noted that foundries are already seeking 2026 forecasts, with Broadcom raising its CoWoS packaging orders for that year.

According to TrendForce, Meta, having deployed its first in-house AI accelerator MTIA, is now co-developing MTIA v2 with Broadcom. Meanwhile, as Google leads among US CSPs with its TPU v6 Trillium, which offers improved energy efficiency and performance for large-scale AI models, the cloud titan has also expanded from a single-supplier model (Broadcom) to a dual-sourcing strategy by partnering with MediaTek.

Strong AI Momentum in Current Quarter

According to the press release quoting CEO Hock Tan, Broadcom’s AI semiconductor revenue is expected to accelerate to $6.2 billion in Q4, following a 63% growth to $5.2 billion in the third quarter ending August 3.

This year, Broadcom launched the Tomahawk Ultra and next-generation Jericho networking chips to enhance AI computing power.

The company projects fourth-quarter revenue of $17.4 billion, surpassing Wall Street’s estimate of $17.02 billion, as per Reuters. Third-quarter revenue rose 22% year-over-year. Broadcom reported a net income of $4.14 billion, or 85 cents per share, compared to a net loss of $1.88 billion, or 40 cents per share, a year earlier.

Read more

• [News] Broadcom Reportedly Boosts 2026 CoWoS Orders with Foundries on Strong ASIC Demand
• [News] Meta Reportedly Teams Up with Broadcom, Taps Quanta for Next-Gen ASIC-powered AI servers

(Photo: Broadcom)